💥Mains Ready By December. Smash Mains & Smash PYQ Admissions Open
Talk to Mentor

Civilsdaily

Login

Subject: Economics

  • [pib] Mineral Conservation and Development (Amendment) Rules, 2021

    The Ministry of Mines has notified the Mineral Conservation and Development (Amendment) Rules (MCDR), 2021.

    About the Amendment

    • The MCDR have been framed under section 18 of the Mines and Minerals (Development and Regulation) Act, 1957.
    • It aims to provide rules regarding conservation of minerals, systematic and scientific mining, development of the mineral in the country and for the protection of environment.

    Key highlights of the amendments:

    Digital aerial imaging of the mines

    • Digital mapping: All plans and sections related to mine shall be prepared by combination of Digital Global Positioning System (DGPS) or Total Station or by drone survey.
    • Drone Imaging: Lessees having annual excavation plans of 1 million tonne or more or having leased area of 50 hectare or more are required to submit drone survey images of leased area and up to 100 meters outside the lease boundary every year.
    • Satellite imaging: Other lessees submit high resolution satellite images obtained from CARTOSAT-2 satellite

    This step will not only improve mine planning practices, security and safety in the mines but also ensure better supervision of mining operations.

    Penalty Provisions

    Penalty provisions in the rules have been rationalized. Amendment in the rules categorized the violations of the rules under the following major heads:

    • Major Violations: Penalty of imprisonment, fine or both.
    • Minor Violations: Penalty reduced. Penalty of only fine for such violations prescribed.
    • Decriminalization of Rules: Violation of other rules has been decriminalized. These rules did not cast any significant obligation on the concession holder or any other person

    Financial Assurance

    • Amount of financial assurance increased to five lakh rupees for Category ‘A’ mines and three lakh rupees for Category ‘B’ mines from existing three and two lakh rupees, respectively.
    • Provision of forfeiture of financial assurance or performance security of the lease holder added in case of non-submission of final mine closure plan within the period specified.

    Employment Opportunity

    • Allowed engagement of a part-time mining engineer or a part-time geologist for small mines which will ease compliance burden for small miners.
    • Diploma in mining and mine surveying is added in qualification for full-time Mining Engineer.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • [pib] E-Amrit Portal for E-Vehicles

    India today launched ‘E-Amrit’, a web portal on electric vehicles (EVs), at the ongoing COP26 Summit in Glasgow, UK.

    It is a must-go portal for every aspirant. Click here to visit E-Amrit.

    E-Amrit Portal

    • E-Amrit is a one-stop destination for all information on electric vehicles—busting myths around the adoption of EVs, their purchase, investment opportunities, policies, subsidies, etc.
    • The portal has been developed and hosted by NITI Aayog under a collaborative knowledge exchange programme with the UK government.

    Features of the portal

    • It intends to complement initiatives of the government on raising awareness about EVs.
    • It aims to sensitize consumers on the benefits of switching to electric vehicles.

    Need for E-Amrit

    • In the recent past, India has taken many initiatives to accelerate the decarbonization of transport and adoption of electric mobility in the country.
    • Schemes such as FAME and PLI are especially important in creating an ecosystem for the early adoption of EVs.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • [pib] Reserve Bank – Integrated Ombudsman Scheme

    The PM will launch two innovative customer-centric initiatives of the Reserve Bank of India.

    What are the schemes?

    [A] Integrated Ombudsman Scheme

    • It aims to further improve the grievance redress mechanism for resolving customer complaints against entities regulated by RBI.
    • The central theme of the scheme is based on ‘One Nation-One Ombudsman’ with one portal, one email and one address for the customers to lodge their complaints.
    • There will be a single point of reference for customers to file their complaints, submit the documents, track status and provide feedback.
    • A multi-lingual toll-free number will provide all relevant information on grievance redress and assistance for filing complaints.

    [B] RBI Retail Direct Scheme

    • It is aimed at enhancing access to government securities market for retail investors.
    • It offers them a new avenue for directly investing in securities issued by the Government of India and the State Governments.
    • Investors will be able to easily open and maintain their government securities account online with the RBI, free of cost.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Logistics Ease Across Different States (LEADS) Report, 2021

    The Logistics Ease Across Different States (LEADS) 2021 Index Rankings has been recently released.

    About LEADS

    • The LEADS index was launched in 2018 by the Commerce and Industry Ministry and Deloitte.
    • It ranks states on the score of their logistics services and efficiency that are indicative of economic growth.
    • States are ranked based on quality and capacity of key infrastructure such as road, rail and warehousing as well as on operational ease of logistics.

    Highlights of the 2021 report

    • India’s logistics costs account for 13-14 per cent of GDP, compared to 7-8 per cent in developed countries.
    • Gujarat, Haryana and Punjab have emerged as the top performers in the LEADS 2021 index respectively.
    • West Bengal, Rajasthan, Madhya Pradesh, Goa, Bihar, Himachal Pradesh and Assam were ranked 15th, 16th, 17th, 18th, 19th, 20th and 21st respectively.
    • North Eastern States, and J&K and Ladakh have been considered a separate group for LEADS rankings.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • India now ahead of China in financial inclusion metrics: SBI report

    India is now ahead of China in financial inclusion metrics, with mobile and Internet banking transactions rising to 13,615 per 1,000 adults in 2020 from 183 in 2015.

    What does one mean by Financial Inclusion?

    • Financial inclusion is defined as the availability and equality of opportunities to access financial services.
    • It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and services.
    • These include banking, loan, equity and insurance products etc.

    Key highlights of the Report

    • Boosted by PM Jan-Dhan Yojana, the number of bank branches per 100,000 adults in India rose to 14.7 in 2020 from 13.6 in 2015.
    • It is higher than Germany, China and South Africa.
    • Data shows that states with higher Jan-Dhan accounts balances have seen a perceptible decline in crime.

    How did India achieve financial inclusion?

    • Financial inclusion policies have a multiplier effect on economic growth, reducing poverty and income inequality, while also being conducive for financial stability.
    • India has stolen a march in financial inclusion with the initiation of PMJDY accounts since 2014.
    • It was enabled by a robust digital infrastructure and also careful recalibration of bank branches and thereby using the BC model judiciously.
    • Such financial inclusion has also been enabled by use of digital payments.

    What is the BC Model?

    • The report highlighted that the Banking Correspondent (BC) model in India is enabled to provide a defined range of banking services at low cost.
    • The new branch authorisation policy of 2017 –recognises BCs that provide banking services for a minimum of 4-hours per day and for at least 5-days a week as banking outlets.
    • The BCs are enabled to provide a defined range of banking services at low cost and hence are instrumental in promoting financial inclusion.
    • This has progressively done away the need to set up brick and mortar branches.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Turmeric Cultivation in India

    Turmeric (Curcuma longa), native to India, has been studied extensively for its effects against viral diseases in recent decades, but the COVID-19 pandemic has renewed interest.

    About Turmeric

    • Turmeric (Curcuma longa) is used as a condiment, dye, drug and cosmetic in addition to its use in religious ceremonies.
    • India is a leading producer and exporter of turmeric in the world.
    • The top five turmeric-producing states of India in 2020-21 are Telangana, Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh.

    Climate and Soil

    • Turmeric can be grown in diverse tropical conditions from sea level to 1500 m above sea level.
    • It requires a temperature range of 20-35 C with an annual rainfall of 1500 mm or more, under rainfed or irrigated conditions.
    • Though it can be grown on different types of soils, it thrives best in well-drained sandy or clay loam soils with a pH range of 4.5-7.5 with good organic status.

    Varieties

    • A number of cultivars are available in the country and are known mostly by the name of locality where they are cultivated.
    • Some of the popular cultivars are Duggirala, Tekkurpet, Sugandham, Amalapuram, Erode local, Salem, Alleppey, Moovattupuzha and Lakdong.

    Preparation of land

    • The land is prepared with the receipt of early monsoon showers.
    • The soil is brought to a fine tilth by giving about four deep ploughings.
    • Planting is also done by forming ridges and furrows.

    Plantation

    • Whole or split mother and finger rhizomes are used for planting and well-developed healthy and disease-free rhizomes are to be selected.

    Why turmeric?

    • Post pandemic, turmeric is one of the fastest-growing dietary supplements.
    • The global curcumin market, valued at $58.4 million in 2019, is expected to witness a growth of 12.7 percent by 2027.
    • As the world’s largest producer, consumer and exporter of turmeric, India stands to gain from this.

    Global standing

    • India produces 78 per cent of the world’s turmeric.
    • The country’s turmeric production saw a near consistent growth since Independence till 2010-11 after which it started fluctuating.
    • The pandemic has given a boost to the crop, with the production witnessing a rise of 23 per cent.
    • Though the production and export of turmeric has risen, farmers have not benefitted from its pricing.

    Try this PYQ from CSP 2020:

    With reference to the current trends in the cultivation of sugarcane in India, consider the following statements:

    1. A substantial saving in seed material is made when ‘bud chip settlings are raised in a nursery and transplanted in the main field.
    2. When direct planting of setts is done, the germination percentage is better with single-budded setts as compared to setts with many buds.
    3. If bad weather conditions prevail when setts are directly planted, single-budded setts have better survival as compared to large setts.
    4. Sugarcane can be cultivated using settlings prepared from tissue culture.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 3 only

    (c) 1 and 4 only

    (d) 2,3 and 4 only

     

    [wpdiscuz-feedback id=”0ncc9i9l5p” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Principles of Responsible Banking (PRBs)

    Global banks are pledging to report annually on the carbon emissions linked to the projects they lend to in an extension to the Principles for Responsible Banking (PRBs).

    What are PRBs?

    • The PRBs are a unique framework for ensuring that signatory banks’ strategy and practice align with the vision society has set out for its future in the SDGs and the Paris Climate Agreement.
    • It was created in 2019 through a partnership between founding banks and the United Nations.
    • The framework consists of 6 Principles designed to bring purpose, vision and ambition to sustainable finance.
    • Signatory banks commit to embedding these 6 principles across all business areas, at the strategic, portfolio and transactional levels:

    Note: India’s YES BANK Limited is the only Indian signatory to this framework.

    Significance of the PRBs

    • Banks can contribute to solving the climate crisis from two angles: their lending and their investments.
    • Many bank policies concentrate their investments on securities that were focused on sustainability.

    Issues with PRB

    • Being a signatory to the PRBs is a limited commitment.
    • Signatories have four years to comply with the principles.
    • Even then, everything is voluntary and non-binding, so signatories are not penalized or even named and shamed for failing to live up to the principles.

    Way forward

    • When signatories to the PRBs are lending money, they are supposed to carry out environmental impact assessments and to measure the greenhouse gas emissions of projects.
    • This is not a minor issue considering that such work is beyond the traditional competencies of banks and will significantly affect their operational costs.
    • Signatories are also supposed to ensure that loans go to projects that are carbon neutral.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • India’s power discoms are at a critical point

    Context

    The power sector in India is at an inflection point. Three developments are triggering a shift across the power chain, generation and distribution in particular, and are in the process deepening existing faultlines, and exacerbating the distress.

    Three changes driving the shift in power sector

    1) Central government’s approach towards distribution segment

    • Till recently, the Centre had preferred to incentivise states, nudging them to address the issue that lies at the heart of the power sector’s woes — turning around the operational performance and financial position.
    • However, despite multiple attempts, not much has changed.
    • But over the past few months, the Centre appears to have changed tack.
    • The Centre no longer appears content to simply nudge states into acting.
    • This change in stance is evident from enforcing the tripartite agreement to recover the dues owed to power producers like NTPC by discoms in Jharkhand, Tamil Nadu and Karnataka to now regulating coal supplies to states where power generating companies have been delaying payments.

    2) Covid impact on government finances and ability to support discoms

    • Notwithstanding buoyant tax revenues this year, Covid has wreaked havoc on government finances.
    • The general government debt stands at 90 per cent of GDP.
    • Add to this demands for greater welfare spending, uncertainty over state government finances once the five year GST compensation period ends next year, and the limits to which states can continue to support discoms will increasingly be tested.
    • To what extent accounting jugglery can be used once again to clean up discom debt is debatable.
    • After all, even the liquidity facility arranged by the Centre to help discoms pay off their obligations will have to be paid back.

    3) Loss of monopoly and shift towards renwable

    • Until now, consumers had little recourse to alternate sources of supply.
    • Consequently, discoms, which are essentially geographical monopolies, were able to charge higher tariffs from commercial and industrial consumers to cross-subsidise agricultural and low-income households.
    • But the situation appears to be changing.
    • Migration of high tariff paying consumers through open access and investments in captive power plants is gaining traction, driven in large part by the emergence of solar as an alternative at seemingly competitive tariffs.
    • This reduced reliance of high tariff paying consumers on discoms will only exacerbate their already precarious financial position.
    • The pace at which this transition is occurring will only accelerate in the coming years.
    • On the supply side, at the global and the national level, there is a push towards cleaner fuel, solar in particular.
    • Flowing from this — though with debatable relevance given the current levels of per capita emissions — is the domestic policy thrust towards renewables.
    • Solar, in particular, benefits from both explicit and implicit subsidies — land at concessional rate, exemption from interstate transmission charges, discounted wheeling charges, cross-subsidies for open access, SECI taking on counterparty risk, and others.
    • It also enjoys “Must Run” status.
    • On the demand side, at current tariffs, solar is emerging as an attractive alternative for the high tariff paying commercial and industrial consumers.
    • On their part, discoms are trying to salvage a losing situation.
    • To stem the flow of high paying customers, some have begun levying an additional surcharge on whoever opts for open access to lower the cost differential.
    • Others are shifting from net metering to gross metering — essentially charging consumers higher tariffs — above particular consumption levels.

    Conclusion

    Continuously subsidising discoms for their AT&C losses (operational inefficiencies), and for not supplying power at commensurate tariffs to low-income households and agricultural customers (for political considerations) will become fiscally untenable.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Charting a trade route after the MC12

    Context

    The World Trade Organization (WTO)’s 12th Ministerial Conference (MC12) is being convened in Geneva, Switzerland at the end of this month.

    Ministerial Conferences

    • The topmost decision-making body of the WTO is the Ministerial Conference, which usually meets every two years. It brings together all members of the WTO, all of which are countries or customs unions.
    • The Ministerial Conference can take decisions on all matters under any of the multilateral trade agreements

    The task ahead for MC12

    • Recent WTO estimates show that global trade volumes could expand by almost 11% in 2021, and by nearly 5% in 2022, and could stabilise at a level higher than the pre-COVID-19 trend.
    • The MC12 needs to consider how in these good times for trade, the economically weaker countries “can secure a share in the growth in international trade commensurate with the needs of their economic development’, an objective that is mandated by the Marrakesh Agreement Establishing the World Trade Organization.
    • Some of the areas are currently witnessing intense negotiations, these include adoption of WTO rules on electronic commerce, investment facilitation, and fisheries subsidies.

    Following issues will form the basis of MC12 discussions

    1) IPR waiver for Covid-19 related technologies

    • Pharmaceutical companies have used monopoly rights granted by their IPRs to deny developing countries access to technologies and know-how, thus undermining the possibility of production of vaccines in these countries.
    • To remedy this situation, India and South Africa had tabled a proposal in the WTO in October 2020, for waiving enforcement of several forms of IPRs on “health products and technologies including diagnostics, therapeutics, vaccines, medical devices.
    •  This proposal, supported by nearly two-thirds of the organisation’s membership, was opposed by the developed countries batting for their corporates.
    • The unfortunate reality of the current discussions is that an outcome supporting affordable access to COVID-19 vaccines and medicines looks distant.

    2) Fisheries subsidies

    • Discussions on fisheries subsidies have been hanging fire for a long time, there is considerable push for an early conclusion of an agreement to rein in these subsidies.
    • The current drafts on this issue do not provide the wherewithal to rein in large-scale commercial fishing.
    • Large scale commercial fishing is depleting fish stocks the world over, and at the same time, are threatening the livelihoods of small fishermen in countries such as India.

    3) E-commerce

    • Discussions on e-commerce are being held in the WTO since 1998, wherein WTO members agreed to “continue their practice of not imposing customs duties on electronic transmissions”.
    • The more substantive outcome was the decision to “establish a comprehensive work programme” taking into “account the economic, financial, and development needs of developing countries”.
    • However, in 2021, a key focus of the 1998 e-commerce work programme, namely “development needs of developing countries”, is entirely missing from the text document that is the basis for the current negotiations.
    • On the negotiating table are issues relating to the liberalisation of the goods and services trade, and of course guarantee for free flow of data across international boundaries, all aimed at facilitating expansion of businesses of e-commerce firms.
    • In fact, the decision on a moratorium on the imposition of import duties agreed to in 1998 has become the basis for a push towards comprehensive trade liberalisation — a perfectly logical way forward, given that the sole objective of the negotiations on e-commerce is to facilitate expansion of e-commerce firms.

    4) Investment facilitation

    • Inclusion of substantive provisions on investment in the WTO has been one of the more divisive issues.
    • In 2001, the Doha Ministerial Declaration had included a work programme on investment, but developing countries were opposed to its continuation because the discussions were geared to expanding the rights of foreign investors through a multilateral agreement on investment.
    • An investment facilitation has reintroduced the old agenda of concluding such an investment agreement.

    Issues with the negotiations

    • The negotiations on e-commerce and investment facilitation are being conducted not by a mandate given by the entire membership of the WTO in a transparent manner.
    • Instead, these negotiations owe their origins to the so-called “Joint Statement Initiatives” (JSI) in which a section of the membership has developed the agenda with a view to producing agreements in the WTO.
    •  This entire process is “detrimental to the very existence of a rule-based multilateral trading system under the WTO”, as India and South Africa have forcefully argued in a submission against the JSIs early this year.

    Conclusion

    Current favourable tidings provide an ideal setting for the Trade Ministers from the WTO member-states to revisit trade rules and to agree on a work programme for the organisation, which can help maintain the momentum in trade growth.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Infrastructure Investment Trusts (InvITs)

    The National Highway Authority of India’s first infrastructure investment trust has raised more than Rs 5,000 crore, informed the Ministry of Road Transport and Highways of India.

    What are InvITs?

    • InvITs are like a mutual fund, which enables direct investment of small amounts of money from possible individual/institutional investors in infrastructure to earn a small portion of the income as return.
    • They work like mutual funds or real estate investment trusts (REITs) in features.
    • They can be treated as the modified version of REITs designed to suit the specific circumstances of the infrastructure sector.

    How are they notified in India?

    • SEBI notified the Sebi (Infrastructure Investment Trusts) Regulations, 2014 on September 26, 2014, providing for registration and regulation of InvITs in India.
    • The objective of InvITs is to facilitate investment in the infrastructure sector.

    Their structure

    • InvITS are like mutual funds in structure. InvITs can be established as a trust and registered with Sebi.
    • An InvIT consists of four elements:
    1. Trustee: He inspects the performance of an InvIT is certified by Sebi and he cannot be an associate of the sponsor or manager.
    2. Sponsor(s): They are people who promote and refer to any organisation or a corporate entity with a capital of Rs 100 crore, which establishes the InvIT and is designated as such at the time of the application made to SEBI, and in case of PPP projects, base developer.
    3. Investment Manager: It is an entity or limited liability partnership (LLP) or organisation that supervises assets and investments of the InvIT and guarantees activities of the InvIT.
    4. Project Manager: It is the person who acts as the project manager and whose duty is to attain the execution of the project and in case of PPP projects.

     

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)